In a very simple stock market, made by only two initially equivalent traders, we discuss how the information can affect the performance of the traders. More in detail, we first consider how the portfolios of the traders evolve in time when the market is closed. After that, we discuss two models in which an interaction with the outer world is allowed. We show that, in this case, the two traders behave differently, depending on (i) the amount of information which they receive from outside; and (ii) the quality of this information.
|Number of pages||10|
|Publication status||Published - 2014|
All Science Journal Classification (ASJC) codes
- Statistics and Probability
- Condensed Matter Physics